On November 20, Indian media Business Standard reported that after three years of repeated attempts to expand its business in India but failed, Apple supplier Lichun Precision has abandoned plans to invest in a factory in India. In this regard, Indian media pointed out that "this is India's loss".
According to the report, Lishun Precision has decided to transfer $330 million (about 2.383 billion yuan) of investment to Vietnam's Bac Giang province.
The Vietnamese government is said to have immediately approved the investment last week, compared with the Indian government's foot-dragging, bringing its total investment in Vietnam to $504 million (about 3.639 billion yuan).
Founded in 2004 and headquartered in Dongguan City, Guangdong Province, Lichun Precision is one of the three major manufacturers of Apple mobile phone assembly. Risun Precision set up an office in India in 2019 with plans to acquire a defunct digital products manufacturing business in the southern Indian state of Tamil Nadu. Lichun Precision plans to invest 7.5 billion rupees (about 650 million yuan) in it, for the production of Apple mobile phone components. However, foreign direct investment (FDI) approvals for the project have been delayed. According to sources familiar with the development of the project, Lishun Precision executives have been denied visas to India on several occasions.
On November 9, the Industrial Park Management Committee of Vietnam's Bac Giang Province released news that Lisun Precision will invest an additional $330 million in the province to build new production facilities. India's "Business Standard" said that Chinese companies change their plans, for India's loss, Vietnam's gain.
In addition, not only Lishun precision. Byd tried to set up an iPad assembly line in India in February 2021 and has previously tried to participate in India's incentives for smartphone production. But for now, BYD's investment has shifted to Vietnam, where it plans to spend $183.7 million to produce electronic components.
